BNZ unveils $1 billion low-rate cyclone recovery loan fund

Tuesday, 21 February 2023

Bank of New Zealand has donated $250,000 to the Salvation Army.

Bank of New Zealand (BNZ) has expanded its support for households and businesses hit hard by Cyclone Gabrielle with a $1 billion “low-interest” loan fund.

The bank said the fund was split into two parts, with $250 million earmarked for low-interest loans for affected BNZ business customers to meet their immediate recovery needs.

The remaining $750m was available for all New Zealand businesses “to invest in their future and build back better, with a focus on resilience, growth and sustainability”, the bank said.

Loans of up to $5m were available to help New Zealand businesses rebuild and for investment in initiatives to future-proof their operations, such as green technology, renewable energy, or new infrastructure, BNZ chief executive Dan Huggins said.

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“We recognise the hardship caused by the recent devastating weather events and want to ensure that businesses in affected regions have access to the support and resources they need to get back on their feet,” Huggins said.

The low-interest recovery loans would be for terms of up to two years, but businesses had to pass the bank’s credit criteria in order to show they expected to be able to pay them back.

The move comes the same day BNZ said it would donate $250,000 to The Salvation Army to support families and local communities struggling in the aftermath of Cyclone Gabrielle and the recent flooding in the upper North Island.

“The full extent of the devastation is still unfolding, and communities are facing a mammoth clean-up ahead,” Huggins said.

Like other banks, BNZ also offered to work with individual customers whose finances had taken a hit.

Options for people and businesses doing it tough included zero-interest overdrafts, and restructuring existing loans.